Basic Concepts of Statistics

Basic Concepts of Statistical Studies

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Introduction s

Decision makers make better decisions when they use all available information in an effective and meaningful way. The primary role of statistics is to to t o provide decision makers with methods for obtaining and analyzing information to help make these decisions. Statistics is









Definition s

Statistics is defined as the science of collecting, organizing, presenting, analyzing and interpreting numerical data for the purpose of assisting in making a more









Applications in Management s

Accounting Public accounting firms use statistical sampling procedures when conducting audits for their clients.

s

Economics Economists use statistical information in making forecasts about the future of









Applications in Management s

Marketing Electronic point-of-sale scanners at retail checkout counters are used to collect data for a variety of of marketing research applications.

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Production A variety of statistical quality









Types of Statistics s

There are two types of statistics 1. Descriptive Statistics is concerned with summary calculations, graphs, charts and tables. 2. Inferential Statistics is a method used to generalize from a sample to a population. For











Statistical Population s

A Population is a collection of all distinct individuals individua individuallss or objects or items under study. The number of











Sample s

A Sample is a part of a population and the sample size is denoted by n. A sample











Data and Data Sets s

Data are the facts and figures collected, summarized, analyzed, and interpreted.

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The data collected in a particular study are referred











Elements, Variables, and Observations The elements are the entities on which data are collected. A variable is a characteristic of interest for the elements.

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Data, Data Sets, Elements, Variables, and Observations ion Observat Observati Observation Observation

Element Names

Company

Variables

Stock Annual Earn/ Exchange Sales($M) Share($)













Scales of Measurement





























































































































































Graphical Summary: Histogram Tune-up Parts Cost 18 16 14 y c n e u q e r F

12 10 8 6









Numerical Descriptive Statistics 

The most common numerical descriptive statistic is the average (or mean).

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Hudson’s average cost of parts, based on the 50 tune-ups studied, is $79 (found by summing the 50 cost values and then dividing by 50). 5 0). 50).









Statistical Inference Population − the set of all elements of interest in a particular study Sample − a subset of the population Statistical inference − the process of using data obtained from a sample to make estimates and test hypotheses about the characteristics of a population Census

collecting data for a population









Process of Statistical Inference 1. Population

consists of all tuneups. Average cost of parts is unknown. unknown

2. A sample of 50

4. The sample average

1. The sample data provide a sample

is used to estimate the

engine tune-ups is examined.









omputers aand n Statistical tatistica Computers Analysis

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Statistical analysis typically involves working with large lar ge amounts of data.

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Computer software is typically used to conduct the analysis. Instructions are provided in chapter appendices for carrying out many of the statistical procedures using Minitab and Excel.

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Basic Concepts of Statistics

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